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Wealth Managers See AI as a Game Changer for HNWI & Mass Affluent, New Forbes Insights and Temenos Report Reveals

New report identifies greater use of AI by wealth managers to deliver predictive guidance, improve risk management and personalize investment experience at scale

Press Releases,
Temenos – Company

GENEVA, Switzerland – June 18, 2018 – Wealth managers that fail to leverage the opportunities offered by artificial intelligence (AI) technologies face an existential crisis, according to a new report ‘AI and the Modern Wealth Manager‘ from Forbes Insights and Temenos, the banking software company.

  • 93% of wealth managers say AI will play a role in the future of their practice
  • Acceptance in digitization is dramatically up to 52% (from 25%) for wealth managers and 41% (from 14%) for High Net Worth Investors – since 2016
  • 54% of respondents say that AI will be essential for them to succeed and to offer personalized guidance and services for clients and prospects
  • 67% of High Net Worth Investors believe that their wealth manager should adopt some level of AI immediately
  • 46% of wealth managers believe that advanced analytics will help them acquire and retain mass affluent clients

Support for technological innovation among wealth managers around the world has increased significantly over the last two years when only a quarter regarded digitization of wealth management services as essential in 2016 . Digitalization and specifically the use of AI is positively impacting portfolio returns, and improving client communication and overall experience, stated the wealth managers surveyed in the report.

The deployment of AI technologies in wealth management is gaining traction and is expected to significantly increase in the coming years to improve user experience in both the High Net Worth Individual (‘HNWIs’ or ‘Investors’) and the mass affluent markets.

Over a third (34%) of wealth managers are currently deploying AI within their firms and a further 25% are testing it, and 99% plan to deploy AI within the next three years. Indeed, almost a third of wealth managers believe that AI is a game changer for the industry and important to the future of their practice. HNWIs also appear aligned and optimistic about the use of AI with 84% being accepting or highly accepting of it in their investing experience, with 96% of investors being supportive of digitalization. 41% of wealth managers believe that strong deployment of AI technologies will help them acquire and retail mass affluent clients.

Pierre Bouquieaux, Product Director Wealth, Temenos said:

“Now that AI technologies are weaving their way into the traditional world of wealth management, a balancing act has emerged that will define the future of the industry: the blending of man and machine in advisors that produces better service and results for increasingly tech-savvy HNWIs and mass affluent clients.”

The emergence of robo-advisors, which automate asset allocation and portfolio management, was previously considered a radical new technology in wealth management. Today, however, almost 90% of wealth managers questioned view robo-advisors in a positive light with 41% believing that strong deployment of AI technologies will help wealth managers acquire and retain mass affluent clients.

Pierre continued:

“The demand for robo-advice is increasing, as evidenced by this report. At Temenos, we have responded to this demand with the launch of Robo-Advisor. This packaged solution can be used by financial institutions across the range of fully automated, hybrid and digital advisory service levels, from mass market to HNWI client segments to help improve returns and enhance the customer experience.”

Robo-Advisor, part of Temenos’ WealthSuite, is a set of packaged AI-based algorithms which enables wealth managers and automates investment management including client profiling, asset allocations, rebalancing and portfolio analysis. WealthSuite provides multi-channel, 24/7 real-time capability to support wealth managers deliver a far better service to clients, while allowing advisors to automate time-consuming compliance and back-office functions. Temenos currently helps advisors manage $19trn assets under management and the WealthSuite solution boasts a raft of top tier names such as Itau Unibanco, Julius Baer and Standard Chartered.

Quoted in the report, Chuck Monroe, Head of AI Enterprise Solutions at Wells Fargo stated:

“We are leveraging artificial intelligence across the organization to make our data smarter, and to create new customer experiences along the way. We wanted to do it in a way that made sense from an organizational perspective, from a customer perspective, and ultimately positioned us to deliver in an efficient way that enabled lines of businesses across the company.”

According to Forbes Insights, it’s no secret that technology is becoming a bigger part of the wealth management experience. At the center of the transformation is AI, which comprises a variety of technologies, such as machine learning and natural language processing that are changing the business while its lifeblood remains firmly planted in the expertise and nuanced touch of a human advisor.


Temenos Press Contacts

Jessica Wolfe

Temenos Global Public Relations

Alistair Kellie & Andrew Adie

Newgate Communications for Temenos